Generally, we connect BPO with outsourcing. However,
there is more to a BPO than mere outsourcing. It is an Information Technology
Enabled Service. This makes it distinct from outsourcing. Here, either an old
technology is used or a new one developed and applied as a means of improving
the process. There is a constant effort to improve the process by newer and
better means. As in the case of outsourcing, the service provider does the
processing based on certain criteria that have to be defined in the contract
between the outsourcer and the BPO. The BPO is a separate entity by itself and
is not owned or managed by the outsourcer. The BPO is the vendor and the
outsourcer is the client.

Reasons for Popularity

BPOs are becoming more popular for many reasons:

The BPO gives the outsourcer cost advantage. The outsourcer does not need to
invest by way of labor, time or technology. Instead, by entrusting the
responsibility to a BPO, the client company can reap the same benefits. The BPO
will process the business in the manner that is most suitable to the strategic
growth of the client. This leaves the client sufficient time to concentrate on
core business. Thus, the BPO is the cheaper option.

If the company had chosen not to outsource to a BPO then it would have to
recruit more employees and spend more time for doing the work by itself. A large
organization would be cumbersome and difficult to manage. The BPO allows the
company the advantage of economies of scale. Another related advantage that an
outsourcer enjoys is that risks involved are much lesser. The BPO is a separate
entity and therefore untouched by the ups and down of business that its client
is facing. The reverse is true for the client too.

Competency and Efficiency are keys to the success of any organization seeking to
maximizing profits. The BPO is a specialist in processing business, hence
handing over your processes to the specialist ensures competency and
efficiency.

Services offered by BPOs

Customer support service:

A large number of BPOs operate as customer support
services. Such services involve responding to telephone calls and emails on
round the clock basis. The BPO employee has to reply to queries, allay concerns
regarding a product or service, and receive orders for the same. The employee
may have to verify accounts, make reservations or verify reservation status.

T echnical Support service BPOs help their customers
with computer hardware and software installation, their usage, and trouble
shooting for any possible problems. These services are offered 24x7 and 365 days
too.

Telemarketing service centers are BPOs that target
potential customers of products and services. They call potential customers and
try to sell and promote their product like any sales person. Promotion of credit
and debit cards are often done by BPOs

IT Help Desks help corporate employees with operational problems, productivity
tools, connectivity and product usage.

Insurance Processing:

These BPO help their clients with regard to
processing of insurance policy. They handle matters like issuance, verification,
claims, payment, nominees, address verification, and notification of new
policies via emails or telephone.

Data entry, processing and conversion services are
offered by specialized BPOs for yellow pages, catalogues and electronic books.
Conversion services enable data to be presented in different formats or media.

Other services:

BPOs are into accounting and ledger maintenance,
processing of medical and insurance bills and online web research.

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